I  tnrtj  on  ^03 


Duke  University   Libraries 

Report  of  the  p 
Conf  Pam  #334 


fl^F   THE 
\ 


POSTMASTER  GENERAL. 


PoST-OFFfCE  Df.PARTMKNT, 

jRkhmtnd,  December  7,  1SC3. 

Sir  :  I  have  the  honor  to  submit  the  following  report  of  the  opera- 
tions of  the  Post-office  Department  for  the  fiscal  year,  from  the  Ist  of 
July,  1862,  to  the  3()th  of  June,  1863. 

The  revenues  derived  from  postages  were  three  millions  three  hun- 
dred and  thirty-seven  thousand  eight  hundred  and  fifty-three  dollars 
and  one  cent,  (f  3, 3 37,853  01  )  The  expenditures  of  the  D  partment 
were  two  million  six  hundred  and  sixty-two  thousand  eight  hun  Ired 
and  four  dollars  and  fifty-seven  cents,  ($2, 662, 8U4  57.)  The  excess 
of  receipts  over  cx;)enditures  was  six  hundred  and  seventy-five  thou- 
sand and  forty-eight  dollars  and  forty-four  cents,  (675,(148  44,)  thua 
ahowiug  the  gratifying  fact  that  the  Department  has  been  brought 
within  the  requirement  of  the  Constitution,  thut  its  expenses  shall  be 
paid  out  of  its  own  revenues  after  the  Ist  of  March,  1863. 

This  presents  a  striking  contrast  when  compared  with  the  receipts 
and  expenditures  of  the  preceding  year,  and  of  the  last  year  under 
the  government  of  the  United  States.  The  receipts  of  revenue  derived 
from  postages  for  the  year  which  ended  June  3  •,  1863,  were  one  mil- 
lion nine  hundred  and  eleven  thousand  one  hundred  and  eighty- nine 
dollars  and  five  cents,  ($1,911,189  05.)  The  expenditures  for  that 
year  were  two  million  nine  hundred  an<l  twenty-four  thousand  tv.-o 
hundred  and  ninety  dollars  and  forty-eight  cents,  ($2,924,290  48,) 
showing  an  excess  of  expenditure  over  receipts  of  one  million 
thirteen  thousand  one  hundred  and  one  dollars  and  forty-three  cen;B, 
($1,013,101   43.) 

The  receipts  of  revenue,  derived  from  the  same  source,  under  the 
government  of  the  United  States,  for  the  fiscal  year  which  ended  the 
30th  of  June,  1860,  were  one  million  five  huridred  and  seventeen 
thousand  five  hundred  and  ,  forty  dollars  and  fifty  five  cents, 
($1,517,540  55.)  The  expenditures  for  the  same  year  were  four 
million  two  hundred  and  ninety-six  thousand  two  hundred  and  forty- 


eix  dollars  and  eeventy-eiglit  cents,  ($4,296,246  78,)  sliowing  that 
the  receipt  of  revenues  was  one  million  eight  hundred  and  twenty 
thousand  three  hundred  and  twelve  dollars  and  fortv-six  cents, 
(S1,82(),3I2  46,)  greater  during  the  last  fiscal  year  than  for  the  last 
year  under  the  government  of  the  United  States  ;  and  that  theexpen- 
ditures  of  the  last  year  were  one  million  six  hundred  and  thirty-three 
thousand  four  hundred  and  forty-two  dollars  and  twenty- one  cents, 
(1,633,443  21,)  less  than  for  the  last  year  under  the  government  of 
the  Uniteil  States.  Adding  the  increase  of  receipts  to  the  decrease  of 
expenditures  between  these  two  years,  and  there  is  an  improvement  of 
tiie  revenues  of  the  year  which  ended  the  3()th  of  June  last,  over 
those  of  the  year  which  ended  June  311,  186li,  of  three  million  four 
hundred  and  fifty-three  thousand  seven  hundred  and  fifty-four  dollars 
aad  sixty-seven  cents,  ($3,453,754  67.) 

The  chief  causes  of  this  improvement  are  the  increased  rates  of 
postage,  which  went  into  operation  with  the  beginning  of  the  last  fiscal 
year;  the  abolition  of  the  franking  privilege;  the  reduction  of  the 
cost  of  the  service  by  a  careful  revision  of  the  post  routes  in  each 
State,  discontinuing  such  as  were  useless,  reducing  the  frequency  of 
trips  on  sucli  as  it  was  thought  would  be  sufficiently  supplied  by  a  less 
number,  and  so  improving  the  system  of  routes  by  adapting  them  to 
the  new  leading  lines  of  communication  and  changed  comlition  of  the 
country,  by  its  growth  and  settlement,  as  to  give  greater  postal  facili- 
ties with  less  expense  than  could  have  been  given  witliout  this  revision. 
And  to  these  causes  may  be  added  our  ina,bility,  owing  to  the  presence 
of  the  enemy's  fleet,  to  perform  the  greater  portion  of  the  service  in 
steamers  on  the  Gulf  of  Mexico,  and  on  the  bays  and  rivers,  which 
was  carried  on  in  times  of  peace,  with  the  consequent  reduction  of 
expense. 

REVENUE    ACCOUNT. 

The  balance  standing  to  the  credit  of  the  revenue  account  of  the 
Department  on  the  3()th  of  June,  1862,  was  $1,209,916   16 

Receipts  from  July  1,  18G2,  to  June  30, 

1363,  3,337,853  01 

The  amounts  pliced  in  the  Treasury  for 

the  use  of  the  Department,  being  grants 

in  aid  of  its  revenues,  under  acts   of 

Congress,  were,   under  act   No.    340, 

approved  Dec.  31,  1861,  for  printing 

blanks  for  the  Post-office  Department,  $16,000  DO 
Under  an  act  approved  Sept.  27,  1862,  to 

pay  the  amounts  due  to  citizens  of  the 

Confederate  States  for  postal  service 

rendered  prior  to  the  1  st  of  June,  1861, 

under     contracts     and     appointments 

made  by  the  Government  of  the  Urtited 

States,  800,000  00 

Amount  carried  forward,  $4,547,769  17 


Amount  brought  forward,  $4,547,769   17 

Under  acts  approved  9th  and  t3th  of  Oc- 
tober, 1862,  to  supply  deficiencies  in  the  '  . 
revenue   of    the   Department   for    the 
months  of  December,  1861,  and  Jan- 
uary, 1862,                                                261,114  78 

1,077,214  78 


Making   the    aggregate  of  revenues   and 

grants,  $5,624,983  95 

The  expenses  of  the  Department  from 
July  1,  1862,  to  June  30,  1863,  includ- 
ing the  amount  paid  on  account  of 
service  performed  prior  to  1st  June, 
1861,  and  arrearages  for  the  previous 
fiscal  year  were,  3,239,319  49 


LeAving  to  the  credit  of  the  Department 
on  the  1st  of  July,  1863,  $2,585,664  46 


The  postal  revenue  for  the  fiscal   year 

being,  $3,337,853  01 

And    the   expenditures   for    the    same 

period,  $3,239,319  49 

Less  the  sums  paid  on  account  of  services 

rendered  prior  to  June  1,  1861,  under 

contracts  and  appointments  made  by 

the  United  States,  $502,017   19 

And  for  Confederate  States 

transportation  which  ac-  ^ 

crued  prior  to  July    1, 

1862,  and  remaining  un- 
paid, 233,644  50      735,661   69   2,505,657  80 


The  excess  of  revenue  over  adjusted  expenditures  was,   $834,195  21 
Deduct  from  that  excess  the  balance  of  transportation 
due  for  that  year,  and  unpaid  on  the  30th  of  Sep- 
tember, 1863,  viz:  159,146  77 

And  the  excess  of  revenue  over  all  expenditures  incur- 
red was,  $675,048  44 


DETAILED    STATEMENT  of   receipts  and  expendiluns  for  the 
fiscal  year  which  ended  June  30,  18G3. 

RECEIPTS. 

From  letter  postage  paid  in  money,  §755,069  84 

From  newspapers  and  pamphlets,  I88,6t)5  52 

From  pale  of  postage  stamps,  2,392,332,63 

From   surplus  of  emoluments  and  box 

rents,  3,785  02 

$3,337,853  01 

EXPENDITURES. 

For  transportation  of  the  mails, 

For  compensation  of  Postmasters, 

For  compensation  of  clerks  in  post-offices^ 

For  ship,  steamboat  and  way  letters. 

For  advertising. 

For  mail-bags,  , 

For  office  furniture, 

For  blanks  and  piinting. 

For  wrapping  paper. 

For  mail  locks,  keys  and  stamps. 

For  mail  depredations  and  special  agents, 

For  miscellaneous  payments, 

For  postage  stamps, 

For  amounts  paid  for  services  performed  prior  to  June 
1,  18C3,  under  contracts  and  appointments  made 
by  the  United  States  Government,  502,017   19 


£1,869,349 

22 

862,873 

57 

91,352 

56 

771 

41 

12,915 

62 

256 

35 

1,400 

00 

n,>l-l7 

76 

9,338 

18 

756 

75 

21.068 

31 

20,539 

69 

12.572 

78 

Making,  $S,'2Sd  319  49 


Exeesfl  of  receipts  over  expenditures  of  all  kinds,  in- 
cluding the  amounts  paid  on  account  of  service 
performed  prior  to  June  I,  1861,  and  for  traus- 
portation  for  the  year  whicli  ended  June  30,  18t)2,  98,533  52 

Or  excluding  all  payments  not  made  on  account  of  the 

service  of  the  current  year,  $675,048  44 

The  foregoing  information  is  shown  in  detail  by  the  report  of  the 
Auditor  of  the  Treasury  for  the  rost-Office  Department,  hereto  ap- 
pended, marked  [I]. 

On  the  12th.  of  February  last,  I  submitted  detailed  estimates  of 
the  receipts  and  expenditures  of  the  Department  for  the  fiscal  year 
ending  June  30,  1863,  and  asked  for  the  appropriation  of  two  million 
eight  hundred  and  sixty-nine  thousand  and  ninety-nine  dollars 
and  ninety-six  cents,  ($2,869,099  96,)  of  the  accruing  revenues  of  that 
year,  derivable  from  postages.  This  appropriation  v/asnot  then  made. 
The  actual  expenditures  of  that  year,  as  now  ascertained,  arc  set  forth 


in  the  foregoing  detailed  statement,  and  amount  to  the  sum  of  two  mil- 
lion seven  hundred  and  thirty-seven  thousand  three  hundred  and  txro 
dollars  and  thirty  cents,  ($2,737,302  30,)  excluding  the  sum  of  five 
hundred  and  two  thousand  and  seventeen  dollars  and  nineteen  cents, 
(502,017  19,)  paid  on  account  of  services  rendered  prior  to  the  1st  of 
June,  1861.  I,  therefore,  ask  that  the  sums  specified  in  the  foregoing 
detailed  statement  of  expenditures  for  that  year  be  now  appropriated, 
less  the  sum  of  $502,017   19. 

This  will  leave  the  sum  of  six  hundred  thousand  five  hundred  and 
fifty  dollars  and  seventy-one  cents  (§600,550  71)  of  the  accrued  rev- 
enues of  th;it  year  unappropriated.  It  is  respectfully  I'equested  that 
this  sum  be  appropriated  in  bulk,  so  that  it  may  be  covered  into  the 
Treasury  for  the  future  use  of  the  Department. 

DETAILED  ESTIMATE  of  Receipts  and  Expenditures  for  the  year 
ending  June  30,  1864. 

RECEIPTS. 

The  actual  balance  in  the  Treasury  to  the  credit  of  the  Post-Office  De- 
partment, after  the  appropriations  above  requested  shall  have 
been  made,  on  the  1st  of  July,  1863,  will  be  $2,385,664  46 

Estimated  receipts  for  the  fiscal  year  ending  June  30, 
1864,  based  on  the  actual  receipts  of  the  preceding 
year,      "  3,337,853  01 


Amount  of  balance  to  the  credit  of  the 

Depatment,  and 

estimated  receipts, 

lES. 

$5,723,517 

47 

EXPENDITUI 

Transportation, 
Compensgrtion  of  Postmasters, 

$2 

,157,846  43 
862,873  57 

Compensation  of  post-office  clerks, 
Ship,  steamboat  and  way  letters. 

116,352  66 
771   41 

Advertising, 

12,915  62 

Mail-bags, 
Office  furniture. 

7,309'  85 
1,460  00 

Blanks  and  printing. 

74,047  76 

Wrapping  paper. 
Mail-locks,  keys  and  stamps, 

29,338   18 
756  75 

Mail  depredations  and  special  agents 
Miscellaneous  payments. 
Postage  stamps. 

26,068  31 
20,539  69 
'27,572  78  $3,537,853 

01 

Leaving  an  estimated  excess  of  means 

over  the  estimated  expenses  of  the 
year,  of 

2,385,664 

46 

In  the  foregoing  estimates,  it  is  assumed  that  the  receipts  of  the 
Department  for  this  year  will  be  equal  to  those  for  the  precoiliiij  year. 
And  an  increase  of  expenditure  is  estimated  for  in  the  items  for  trans- 
portation of  the  mails,  compensation  of  clerks  in  post-ofhces,  blanks 
and  printing,  wrapping  paper,  postage  stamps,  mail  depredations  and 
special  agents,  and  mail-bags,  on  account  of  the  increased  cost  of  the 
items  enumerated. 

As  we  have  no  more  reliable  data  than  those  herein  presented,  on 
which  to  base  estimates  of  the  receipts  and  expenditures  for  the  fiscal 
year  ending  June  50,  1865,  it  is  assumed  that  the  receipts  of  that 
year  will  be  the  same  as  for  the  year  which  ended  June  30,  18G3,  as 
hereinbefore  stated,  and  that  the  expenditures  will  be  the  same  as 
those  estimated  for  the  year  ending  June  30,  1864.  I,  therefore, 
respectfully  request  that  an  appropriation,  the  same  in  items  and 
amounts,  be  made  for  the  year  ending  June  30,  1865,  out  of  the  rev- 
enues arising  from  postages,  as  is  above  requested,  for  the  year  ending 
June  30,  1864. 

I  have,  heretofore,  asked  for  an  appropriation  of  the  sura  of  two 
hundred  and  seventy-six  thousand  three  hundred  and  fifty-five  dollars 
and  twenty-three  cents,  ($276,355  23,)  of  the  revenues  of  the  Depart- 
ment, derived  from  postages,  for  the  year  which  ended  June  30,  1862, 
to  enable  the  Treasurer  to  close  the  accounts  of  the  Department  for 
that  year.  I  repeat  the  request  for  that  appropriation,  it  not  then 
having  been  made. 

Though  the  sum  standing  to  the  credit  of  the  Department,  at  the 
end  of  the  last  fiscal  year,  is  considerable,  and  the  estimates  for  this 
and  the  succeeding  year  do  not  contemplate  its  reduction,  it  is  to  be 
remembered  that  we  cannot  foresee  the  contingencies  which,  during 
the  war,  may  again  reduce  the  receipts  below  the  expenditures, 
and  that,  if  this  should  happen,  and  we  should  not  have  a  suffi 
cient  sum  in  reserve,  we  should  be  compelled  to  reduce  the  postal  service 
to  an  amount  which  the  receipts  would  pay  for,  as  no  future  appropri- 
ations can  be  made  from  the  general  treasury  for  the  use  of  the  Post- 
Office  Department.  It  is  also  believed  that  the  restoration  of  peace 
will,  when  it  occurs,  reduce  the  receipts  of  the  Department,  by  re- 
ducing the  amount  of  general  and  official  correspondence,  to  which 
the  existence  of  our  armies  and  the  absence  of  so  many  of  our  people 
from  home  and  friends  have  given  rise  ;  and  that,  when  this  shall  take 
place,  it  will  be  important  to  have  a  sufficient  balance  in  the  Treasury 
to  meet  the  deficiency,  until  it  can  be  supplied  by  the  revival  of  trade 
and  the  general  business  of  the  country.  For  these  reasons,  it  is  be- 
lieved that  any  reduction  of  the  rates  of  postage  would,  at  this  time, 
^e  impolitic. 

CONTRACT  BUREAU. 

Mail  Letiings  during  the  year  ending  June  SQth,  1863. 

On  the  3l8t  of  December,  1862,  advertisements  were  published,  in- 
viting proposals  for  carrying  the  mails  of  the  Confederate  States  in 


the  States  of  Virginia,  North  Carolina,  South  Carolina,  Georgia  ar.vl 
Florida,  from  the  Ist  of  July,  1863,  to  June  Sdth,  i867,  the  propo- 
sals to  be  received  until  3  P.  M.,  March  31,  18G3,  and  decisions  to 
be  m.ade  and  contracts  awarded  by  April  3()th,  1863. 

The  number  and  lineal  length  of  routes,  thus  advertipcd  and   open 
to  competition  of  bidders,  were  as  follows,  viz  : 

In  Virginia,.  5iO  routes;  lineal  length  8,183  3-4  miles. 

In  North  Carolina,         213       "  ''         "  7,Gol1-4     " 

In  South  Carolina,         131        '*  "         "  3,887  3-4     " 

In  Georgia,  19i)       '«  "  '♦  5,165  1-4     ** 

In  Florida,  43       ^'  "  ''  2.173  1-2     '* 


Total  number  of  routes,  887     Ag'te-of  lineal  length,  27,OGl  1-2     ** 

Owing  to  the  fact  that  Congress  had,  on  the  1 1th  of  October,  18^2, 
repealed  an  act,  approved  21st  of  April,  1862,  which  exempted  froni 
the  perforrannce  of  miltary  service  all  persons  engaged  in  the  trans- 
portation of  the  mails,  the  number  of  those  proposing  to  become  con- 
tractors for  the  incoming  term  of  four  years  became  very  limited  ; 
and  on  the  1 1th  of  March,  within  twenty  days  of  the  expiration  of  the 
time  specified  for  receiving  proposals,  only  1 14  bids  had  been  received 
at  the  department,  being  773  loss  than  the  number  of  routes  open  to 
competition. 

This  condition  of  affairs  made  it  manifest  that  the  department  would 
be  unable  to  obtain  contracts  for  mail-service  in  those  States  without  the 
aid  of  an  act  of  Congress,  exempting  contractors  anddrj^'ers  of  post- 
ccaches  and  hacks  from  tlie  performance  of  military  duty.  Hence, on 
the  14th  of  March,  1863,  I  felt  it  to  be  my  dutv  to  bring  this  serious 
embarraseraent  which  threatened  the  postal  service  of  the  country  to 
the  attention  of  the  President. 

On  the  1 1th  of  April  following.  Congress,  by  the  passage  of  a  joint 
resolution,  authorized  the  Postmaster  General  to  extend  the  time 
for  receiving  bids  for  transportation  of  the  mails  in  these  States  until 
the  first  day  of  May,  1863;  and  on  the  14th  day  of  April,  1S63,  that 
body  passed  f\ie  following  act  of  exemption,  viz  : 

**  An  Act.  to  exempt  Contractors  for  carrying  the.  mails  of  the  Confcdercti 
States  and  the  Drivers  of  Pat  Coaches  and  Hac/c^  from  Military  Ser- 
vice. 

*'  The  Congress  of  the  Confederate/States  of  America  do  enact,  Th  -t 
the  contractors  for  carrying  the  mails  of  the  Confederate  States  ^hall 
be  exempt  from  the  performance  of  military  duty  in  tlie  armies  of 
the  Confederate  States,  from  and  after  the  passage  of  this  act,  during 
the  time  they  are  such  contractors  ;  provided,  that  no  more  than  one 
contractor  shall  be  exempt  on  any  loute,  and  that  no  more  than  one 
member  of  any  firm  of  contractors  shall  be  exempt,  and  no  contractor 
on  any  route  of  less  than  ten  miles  in  length,  apd  on  which  the  mail 
is  carried  on  horse,  shall  be  exempt  under  this  act;  and  if  one  or 
more  members  of  any  such  firm  be  exempt  from  age  or  other  cause  from 


8 

tt»  perforiTiance  of  military  duty,  the  other  member,  or  members  of 
8UcL  firm,  shall  not  be  exempt  by  this  act  on  account  of  bting  mail 
contractors  :  and  provided  further,  that  no  person  to  whom  a  contract 
for  carryln<:  the  mails  may  be  transferred,  with  tlie  consent  of  the 
Post-Oftice  Department,  after  the  passage  of  this  act,  shall  be  exempt 
frojp  military  ncrvicc  on  that  account. 

"  Sr.c.  f2.  That  drivers  of  post  coaches  and  hacks  for  carrying  the 
inaiL'i  on  all  routes  where  the  weight  of  the  mails  requires  that  they 
fihoii'id  be  carried  in  coaches  or  hacks,  shall  be  exempt  from  m.litary 
service  in  the  armies  of  the  Confederate  States  from  and  after  the 
passage  of  ihis  act,  so  long  as  they  continue  to  be  employed  as  such 
drivers  :  provided,  the  contractor,  by  whom  any  such  driver  is  em- 
jdoyed,  shall  take  and  subscribe  an  oath  to  be  furnished  to  the  en- 
1  oiling  officer,  that  the  weight  of  the  mails  on  his  route  requires  the 
use  of  coaches  or  hacks  for  their  conveyance,  and  that  he  has  not  a 
greater  number  of  drivers  employed  in  his  service  than  are  indispen- 
salle  to  enable  him  to  fulfill  his  contract  for  carrying  the  mai!^,  and 
that  he  will  not,  while  a  contractor,  employ  a  greater  number  of  driv- 
ers than  may  be  indispensably  necessary  for  that  pur[)ose;  and  that 
he  will  give  notice  to  the  enrolling  oflicer  when  any  such  drivers  cease* 
to  be  in  his  employment, 

"Approved  Apni  U,  1SG3." 

The  greatest  available  publicity  was  given  to  these  acts  of  Con- 
gress, and,  in  the  meantime,  the  proposals  already  received  at  the  De 
parttnent  wore  retained  unopened  until  the  1st  of  May. 

Although  the  extended  time  was  too  limited  to  give  as  general 
public  notice  as  was  desirable  to  secure  an  enlarged  competition,  yet 
numerous  proposals  were  received;  and  a  number  of  those  on  routes 
over  ten  miles  in  length,  and  on  which  the  mails  could  be  carried  on 
horseback,  were  remarkably  low. 

The  whole  number  of  routes  let  to  contract  under  the  advertise- 
ment, and  the  aggregate  cost  per  annum  of  service  thereon  in  each 
State,  were  as  follows,  viz  :  ^ 

In  Virginia,  253  routes ;  actual  cost  of  service,    $98,367  &3 

In  North  Carolina,      lOf)       "  "         ♦*  "  90,135  02 

In  South  Carolina,      124       "  "         "  "  49,930  00 

In  Georgia,  173       "  "         "  "  78,8^2  05 

InFIoiida,  3(i       '•  '<         •«  "  28,652  00 


Total  No.  of  routes     785     And  anu  1  ag'tc  of  cost  $3.J2,466  68 

The  number  of  routes  not  let  to  contract  was,  in  Virginia,  51,  on 
38  of  which  there  were  no  bids  Submitted;  on  17,  the  bids  were  re- 
garded as  too  extravagant  for  acceptance  ;  whilst  2  were  omitted  as 
unnecessary. 

In  North  Carolina  14,  on  10  of  which  there  were  no  bids  submitted  ; 
on  3  the  bids  were  deemed  extravagant;  whilst  on  1,  action  has  been 
suspended. 


9 

In  South  Carolina  7,  on  2  of  which  there  we  no  bids  submitted ; 
whilst  on  5  action  has  been  deferred. 

In  Georgia  17,  on  I  of  which  there  was  no  bid  sumbitted  ;  on  1 1 
the  proposals  were  regarded  as  extravagant,  whilst  5  were  omitted  as 
unnecessary. 

The  total  number  of  lineal  miles  length  of  routes,  and  of  annual 
transportation  of  the  mails,  let  to  service  in  these  States,  independent 
cf  railroad  routes,  is  as  follows,  viz  : 
In  Virginia,  7,062  lineal  miles,  and  an'l 

transp'n  thereon,  1, •387,640  mtJes 

In  North.  Carolina,    7,026  1-4    lineal  miles,  and  an'l 

transp'n  thereon,  1,181,440     *' 

In  South  Carolina,  3,787  1-4    lineal  miles,  and  an'l 

transp'n  thereon,  593,684     " 

In  Georgia,  3,859  1-4    lineal  miles,  and  an'l 

transp'n  therecn,  956,426     ** 

In  Florida,  1,735  lineal  miles,  and  an'l 

transp'n  thereon,  297,544     " 


Total  number,         23,459  3-4    of  lined  miles,  and  of 

an'l  transp'n  thereon  4.416,740     " 

The  average  cost  of  service  for  one  trip  a  week  in  these  States  for 
each  lineal  mile  length  of  route,  on  which  mail  service  is  performed, 
and  for  each  mile  of  actual  transportation,  per  annum,  is  as  follows, 
viz : 

In  Virginia,  for  each  lineal  mile  per  annum,  $7  41,  and  for  trans- 
portation about  7  cents  per  mile. 

In  North  Carolina,  for  each  lineal  mile  per  annum,  $3  46,  and  for 
transportation  about  8  cents  per  mile. 

In  South  Carolina,  for  each  lineal  mile  per  annum,  $3  65,  and  for 
transportation  about  8  1-5  cents  per  mile. 

In  Georgia,  for  each  lineal  mile  per  annum,  $'/  58,  and  for  trans- 
portation about  8  1-4  cents  per  mile.  * 

In  Florida,  for  each  lineal  mile  per  annum,  $10  01,  and  for  trans- 
portation about  9  3-4  cents  per  mile. 

The  cost,  per  annum,  of  railroad  service  in  the  foregoing  States  is, 
In  Virginia,  $157,662  00 

In  North  Carolina,  77,864  00 

In  South  Carolina,  130,327  00 

In  Georgia,  160,475  25 

In  Florida,  27,777  50 


Total,  $560,105  75 

Add  cost  of  routes  let  to  contract,  as  above,  352,466  68 


Total  cost  in  these  States,  $912,572  43 

Add  cost  of  transportation  in  the  other  States  of  the 
Confederacy,  let  to  contract  during  the  previous 
year,  on  routes  other  than  railroads,  800,891  00 


1% 

Amount  brought  forward,  $1,713,463  43 

And  on  railroads,  444,602  50 


Total  copt  of  transportation  per  annum,  $2,l58,n65  93 


The  number  of  mail  contractors  in  Virginia,  is  240 

The  number  of  mail  contractors  in  North  Carolina,  is  167 

The  number  of  mail  contractors  in  South  Carolina,  is  112 

The  number  of  mail  contractors  in  Georgia,  is  145 

The  number  of  mail  contractors  in  Florida,  is  31 

The  number  of  mail  contractors  in  Tennessee,  is  Gl 

The  number  of  mail  contractors  in  Alabama,  is  131 

The  number  of  mail  contractors  in  Mississippi,  is  8S 

The  number  of  mail  contractors  in  Louisiana,  is  43 

The  number  of  mail  contractors  in  Arkansas,  is  86 

The  number  of  mail  contractors  in  Texas,  is  124 

Total  number,  1,253 


Of  this  number  147  obtained  contracts  upon  bids  for  a  nominal 
rate  of  compensation  per  annum. 

By  the  act  of  April  14th,  18G3,  hereinbefore  copied,  contractors 
for  carrying  the  mails  on  post-routes  of  more  than  ten  miles  in  length, 
and  the  drivers  of  post-coaches  and  hacks  for  carrying  the  mails,  were 
exempted  from  military  service  during  the  contliiiuance  of  their  con- 
tracts, or  their  employment  as  such,  on  the  terms  specified  in  the  act. 
The  Department  has  encountered  much  difficulty,  and  has  been  sub- 
ject to  no  little  embarrassment,  on  account  of  the  action  of  the  mili- 
tary authorities  charged  with  the  execution  of  the  law  of  conscription. 

I  recognize  fully  the  necessity  of  calling  into  the  military  service 
all  who  are  capable  of  bearing  arms,  and  who  can  be  spared  from  other 
employments.  But,  under  this  law,  the  number  to  be  exempted  was 
too  small  to  affect  materially  the  military  operations  ;  nnd  yet  the 
exemption  of  that  snmll  number,  under  the  circumstances  which  induced 
the  adoption  of  the  policy,  was  necessary  to  keep  in  successful  opera- 
tion the  postal  service,  and  to  satisfy  the  demands  of  the  public  by 
the  proper  and  speedy  transmission  of  intelligence. 

RAILROAD   SERVICE. 

The  ])epartment  has  omitted  to  advertise  for  proposals  for  mail  ser- 
vice on  railroad  routes,  because  of  the  fact  that  it  is  authorized,  under 
existing  laws,  to  make  contracts  with  railroad  companies  without 
advertisement ;  and  as  there  can  be  no  competition  for  such  service,  the 
effect  of  an  advertisement  Avould  simply  lie  to  invite  proposals  for  an 
increase  of  compensation,  which  could  not  be  granted  unless  the 
postal  facilities  furnished  by  the  route  should  have  so  increased  as  to 
change  the  classification  of  the  road,  under  the  act  approved  Mav  9th, 
1861. 

Most  of  the  raiload  presidents  have  executed  contracts  with  the 
Department  for  the  transportation  of  the  mails  from  the.lst  of  July, 


11 

1863;  but  there  are  some  who  refuse  to  execute  contracts,  although 
they  are  offered  the  maximum  rate  of  compensation  for  the  first-class 
roads.  At  the  same  time  they  express  their  entire  willingness  to 
carry  the  mails,  but  are  ftnwilling  to  place  their  roads,  and  mail  ser- 
vice on  them,  under  even  that  limited  control  of  the  Department, 
which  is  necessary  to  give  regularity,  certainty  and  security  to  the 
service. 

The  only  remedies  for  the  evils  which  must  result  from  the  trans- 
portation of  the  mails  without  the  restraining  influence  of  contracts 
for  its  faithful  performance,  which  the  Department  can  apply,  are, 
1st,  to  withhold  payment  for  services  performed  without  contract; 
and,  2d,  if  they  still  refuse  to  contract,  then,  to  withdraw  the  mails 
from  such  roads  and  endeavor  to  obtain  some  other  mode  of  convey- 
ance. 

In  view  of  the  requirements^  of  the  law  upon  this  subject,  it  will  be 
my  duty  to  apply  these  remedies  to  all  roads,  whose  presidents  per- 
sist in  their  refusal  to  comply  with  the  requirements  of  the  Depart- 
ment in  relation  to  contracts  ;  for,  although  the  practice  has  existed, 
to  some  extent,  of  permitting  the  mail  service  to  be  performed  on 
railroads  without  contracts,  and  paying  for  such  service  by  what  are 
termed  "  Orders  of  Recognition,"  such  practice  was  clearly  a  viola- 
tion of  the  law  which  forbids  payment  for  mail  service,  until  contracts 
shall  have  been  executed  according  to  law  and  the  regulations  of  the 
Department. 

Wealthy  corporate  monopolies  should  not  be  permitted  to  occupy 
such  a  position  in  relation  to  the  postal  service  of  the  country,  on  the 
great  trunk  lines  of  mail  communication,  as  would  place  such  service 
completely  within  their  control,  not  only  upon  the  main  lines,  but, 
also,  upon  the  numerous  minor  mail-routes  leading  therefrom  ;  for  of 
what  avail  wouhl  it  be  for  the  Department  to  enforce,  on  the  part  of 
the  contractors  upon  these  latter  lines,  a  strict  compliance  with  the 
terms  of  their  contracts  in  relation  to  schedules  of  arrivals  and  de- 
partures of  the  mails,  if  railroad  lines  are  permitted  to  carry  the 
mails  at  pleasure  without  the  obligations  of  contracts  to  compel  their 
observance  of  fixed  schedules,  which  are  the  essential  element  in  a 
great  net-work  of  post-routes  ?  It  would  be  unjust,  if  the  law  would 
tolerate  it,  to  relieve  them  of  conditions  which  are  required  of  all 
other  contractors. 

The  Department  has  never  possessed,  or  attempted  to  exercise,  any 
other  authority  over  the  schedules  of  arrivals  and  departures  of  mail- 
trains  upon  railroads  than  that  necessary  to  require  them  to  run  in 
conformity  with  schedules  "  agreed  07i  "  between  them  and  the  Depart- 
ment ;  and  these  schedules  have  usually  been  arranged  in  conventions 
held  by  the  officers  of  connecting  lines  so  as  to  obtain  the  uniform 
and  close  schedules  of  connection  required  by  their  own  interests. 

If  any  road,  forming  part  of  a  through  line  between  important 
points,  be  permitted  to  carry  the  mails  without  executing  proper  con- 
tracts for  the  faithful  performance  of  such  service,  the  Department 
will  not  have  the  power  to  prevent  them  from  adopting  any  schedule 
they  may  deem  best  suited  to  their  local  business,  without  regard  to 


1« 

their  effect  upon  the  regularity  of  the  mails  on  their  own  lines,  or  of 
their  proper  connections  with  others. 

APPOINTMENT  BUREAU. 

The  whole  number  of  post-oflficcs  is  8,287 

Number  filled  by  Presidential  appointment,  88 

Number  of  postoffices  established  from  July  1st,  1862,  to 

June  Sftth,  18G3,  137 

Number  discontinued,  4U0 

Number  of  resignations  of  postmasters,  602 

Number  of  postmasters  removed,  €2 

Number  of  postmasters  who  died,  93 

Number  of  postmasters  appointed,  1,480 

Number  of  postmasters  commissioned,  l,22o 

Which  is  shown  by  States,  and  in  detail,  in  tabular  statement 
marked  (2). 

The  number  of  requisitions  made  by  postmasters  for  postoffiee 
blanks,  wrappino;  paper  and  twine,  all  of  which  were  filled,  from  the 
1st  of  July,  1862,  to  the  3()th  of  June,  18G3,  was,  10,646 

Post  bills  firrnished,  234,6  1 1  sheets. 

Accounts  of  mails  received,  119,140 

Accounts  of  mails  sent,  77,186 

Accounts  current,  39,533 

Accounts  of  newspapers,  16,683 

Accounts  of  prepaid  matter,  889 

Signature  post-bills,  236,760 

Accounts  of  mails  received  for  distribution,  o,080 

Accounts  of  mails  sent  from  distributing  offices,  16,970 

Wrapping  paper,  628,320 

Cotton  twine,  373  pounds 

Hemp  twine,  250     *' 

Which  is  shown  by  States,  and  in  detail,  in  tabular  statement, 
marked  (3). 

Whole  number  of  special  mail  agents,  10 

Number  appointed  from  July  1st,  18G2,  to  Juno  30th,  1863,  3 

And  one  resigned,  and  one  was  removed  during  the  year. 
Whole  number  of  route  agents  87 

Number  appointed  from  July  1st,  1862,  to  June  30th,  1863,  28 

Number  removed,  9 

Number  who  resigned,  10 

Number  who  died,  3 

Number  of  marking  and  rating  stamps  sent  out  during  the  year,     109 

In  reporting  the  operations  of  this  bureau,  which  is  cliarged  with 
the  procurement  of  paper,  printing,  and  the  furnishing  cf  postmasters 
with  blanks,  wrapping  paper  and  twine,  it  is  proper  to  refer  to  the 
difficulties  weich  have  been  encountered  during  the  present  fiscal 
year  in  obtaining  material  for  thes3  purposes.  The  amount  of  paper 
thus  used  is  very  large,  and  has  risen  in  price  from  ten  cents  per 
pound,  the  rate  at  which  it  was  furnished  to  the  Department  in  1861, 


13 

to  one  dollar  a  pound  now  ;  and  some  of  the  railla  are  asking  more 
than  this.  At  these  rates  it  has  been  found  impossible,  from  its  scar- 
city, to  procure  what  was  needed  to  supply  the  post-office. 

On  account  of  the  policy,  which  resulted  from  the  necessity  of  our 
situation,  of  refusing  to  exempt  postmasters,  except  those  appointed 
by  the  President  and  confirmed  by  the  Senate,  from  military  service, 
many  changes  have  been  made,  and  new  and  inexperienced  postmas- 
ters have  been  appointed  in  the  place  of  those  more  familiar  with  the 
duties.  This  has  been,  and  is,  producing  some  irregularity  in  the 
business  of  postoffices,  and  delays  in  the  transmission  of  mail  matter; 
and  from  the  difficulty  of  obtaining  final  settlements  with  the  out-go- 
ing postmasters,  suddenly  called  into  the  military  service,  it  will  pro- 
bably result  in  some  pecuniary  loss  to  the  Department. 

In  all  appointments  of  clerks  of  this  Department,  route  agents  and 
postmasters,  during  the  last  and  present;  fiscal  years,  they  have  been 
limited  to  persons  exempt  from  military  duty  by  being  over  the  age 
required  for  the  army,  or  on  account  of  having  been  disabled  by 
wounds,  or  from  other  causes.  On  account  of  the  great  number  of 
men  who  have  been  called  into  the  military  service,  we  h;ivc  made 
frequent  appointments  of  females  to  be  postmasters  in  the  class  of 
smaller  post-offices  ;  and  they  have  been  generally  found  faithful  and 
efficient  in  the  discharge  of  their  duties. 

FINANCE  BUREAU. 

The  report  of  the  chief  of  the  finance  bureau  shows  that  the  balance 
in  the  Treasury  and  its  branches,  to  the  credit  of  the  Postoffice  De- 
partment, on  the  1st  of  July,  1862,  was  $1,5U5,U83  77 

The  amount  deposited  by  postmasters  in  the  different 
depositories  of  the  Department,  from  July  1st, 
1862,  to  June  30th,  1863,  was  984.583  78 

Amount  of  appropriation  by  act  of 
September  22d,  1862,  to  pay  con- 
tractors for  services  rendered  prior 
to  the  1st  of  June,  1881,  $800,000  00 

Amounts  appropriated  by  acts  of  Oc- 
tober 9th,  and  October  13th.  1863, 
in  aid  of  the  revenue  of  the  Depart- 
ment for  the  months  of  December, 
1862,  and  January,  1863,  261,214  78 

Amount  appropriated  by  act  of  31st 
December,  1861,  making  additional 
appropriations  to  defray  the  expen- 
ses of  public  printing,  16,000  00 

1,077,214  78 


Making  the  amount  in  the  Treaasury  and  its  branches, 

from  all  sources,  to  the  30th  of  June,  1863,  $3,566,882  33 


14 

Amount  brought  forward,  §3,566,882  33 

The  number  of  warrants  on  the  Treasury,  issued 
from  July  Ist,  1862,  to  June  3(Jth,  1863,  was 
2,'IGI,  amounting  to  1.4o7,G44  40 

Leaving  in  the  Treasury  and  its  branches  on  the  30th 

of  June,  18G3,  §2,109,237  93 

AVhich  was  distributed  as  follows: 
Richmond,  §1,379,094  G7 

Charle!-ton,  47L394  57 

Kew  Orleans,  110,020   10 

Augusta,  15,981   04 

Galveston,  93,107  43 

Lictle  Rock,  4,65G  2i 

Savannah,  28,556  53 

Selma,  *  5,527  37 

'■ $2,109,237  93 


The  number  of  warrants  issued  from  July  1st,  1862, 
to  June  30th,  1863,  as  above  stated,  was  2,i)61, 
amounting  to  $1,457,644  40 

The  number  of  drafts  issued  during  the  same  period 

was  3,109,  amounting  to  481,335  62 


Amount  paid  by  warrants  and  drafts,  $1,938,980  02 

The  number  and  denomination  of  postage  stamps  supplied  to  post- 
masters from  July  1st,  1862,  to  June  30th,  1863,  were  as  follows: 
Number  of  2  cent  stamps,                557,200  value          $11,14400 
"          5         «*                       87,953,977  1,897,698  85 
"         10          "                        10,417,700  1,041,770  00 
«*        20         *'                               95,100  19,020  00 


Making     49,023  977  $2,969,632  85 

The  number  of  dead  letters  opened,  and  containing 
$13, 7(H)  93  in  money,  registered  and  sent  out 
for  delivery  from  July  1st,  1862,  to  June  30th, 
1863,  was  1,618 

Number  of  dead  letters  opened  and  filed,  contain- 
ing $15,357  23  in  money,  not  sent  out  during 
the  year,  was  794 

Number  of  dead  letters,  containg  drafts,  checks, 
bills  of  exchange,  and  other  enclosures  of  value, 
amounting  to  $691,567  75,  registered  and  sent 
out  for  delivery,  1,313 

Total  number  of  dead  letters  containing  money 

and  valuables,  3,725 


15 

Number  of  unpaid  letters  held  for  postage  and  re- 
turned to  the  dead  letter  oflSce,  31,395 
Number  of  drop  letters  held  for  postage  and  re- 
turned to  the  dead  letter  office,  1 1,816 
Number  of  dead  letters,                                                 475,1 16 
Total  number  of  dead  letters  opened  from  July  Ist, 

1862,  to  June  3()th,  1S63,  518,327 

The  number  of  quarterly  returns  received  and  passed  to  the  Audi- 
tor from  July  1st,  1862,  to  June  3()th,  1863,  were  as  follows  : 
For  the  quarter  ending  September  30th,  18G2,  5,751 
"  "  December  31st  <♦  5,660 
"  "  March  31st,  1863,  5,252 
"  "  June  3Uth,  "  4,336 
Total  returns  for  the  year,  20,999 

The  large  number  of  31,395  letters  for  transmission  through  the 
mails,  and  of  11,816  drop  letters,  that  is,  letters  for  delivery  from 
the  office  at  which  they  are  mailed — making  in  all  43,2 11  letters, 
which  were  sent  to  the  dead  letter  office  because  the  postage  was  not 
pre-paid  on  them,  as  required  by  law,  will  serve  to  show  how  many 
persons  were,  in  that  way,  disappointed  by  the  non-delivery  of  these 
letters,  and  may  have  attributed  their  disappointment  to  the  defective 
organization  or  management  of  the  postal  service,  when  it  was  attribu- 
table to  a  failure,  on  the  part  of  those  sending  them,  to  comply  with 
the  requirements  of  the  law  by  pre-paying  the  postage  on  their  letters. 

There  are  a  number  of  letters  filed  in  the  "  Dead  Letter  Branch  " 
of  the  Department,  which  contained  funds  amounting  to  $6,413  71, 
for  the  return  of  which  to  the  proper  parties  the  finance  bureau  has 
made  repeated,  but  ineffectual,  efforts.  In  order  to  secure  the  several 
sums  for  delivery  to  the  owners  thereof,  at  some  future  time,  I  have 
caused  accurate  lists  to  be  prepared  of  these  letters  and  their  contents, 
and  have  deposited  in  the  Treasury  of  the  Confederate  States,  to  the 
credit  of  the  "Dead  letter  Fund,"  $6,400  in  treasury  notes,  and 
$13  71  in  specie. 

MILITARY  TELEGRAPHING. 

The  number  of  agents  and  operators  of  Military  Telegraph  Lines  in 

service  on  the  1st  of  July,  1862,  was  17 

The  number  appointed  July  1st,  1862,  to  June  30th,  1863,      44 

Total  number  employed  during  the  year,  61 

Number  who  resigned  during  the  year,  26 

Number  who  were  dismissed  during  the  year,  2 

—     28 

Leaving  in  service  June  30th,  1863,  33 

Number  of  watchmen  in  service  July  1st,  1862,  3 

Number  of  watihmen  appointed  from  July  Ist,  1862,  to  June 
30th,  ^863,  7 


16 

Total  number  employed  during  the  jear,  i»I 

Number  of  watchmen  whose  services  were  discontinued,  1 

Leaving  in  service  June  30th,  1863,  9 

Number  of  military  telegraph  offices  in  operation  July 

l8t,  18G2,  IG 

Number  established  from  July  let,  1862,  to  June  3()th, 

1863,  SO 

Total  number  in  operation  during  the  year,  46 

Number  discontined,  13 

Leaving  in  operation  June  30th,  1SC3,  33 

Number  of  miles  of  military  telegraph  lines  in   opera- 
tion on  the  Ist  of  July,  1862,  211 
Number  of  miles  built  from  July    Ist,    1862,  to  June 

30th,  1863,  (at  an  average  cost  of  $4S  per  mile,)  238 

Total  number  of  miles  in  operation  during  the  year,  449 

Number  of  miles  taken  down,  27 

Leaving  in  operation  June  30th,  1863,  422 

Cost  of  agents   and   operators   from  July 

1st,  1862,  to  June  3i!th,  1863,  $13,480   16 

Cost  of  watchman,  2,964  50 


Total  cost  of  agents,  operators  and  watchmen.  $15,444  66 
Cost  of  instruments  and  materials  furnished  to  the  va- 
rious offices  from  July  ".et,  1863,  to  June  30th,  1863,  12,546  00 
Cost  of  repairs  of  lines  for  same  period,  313  75 
Cost  of  military  lines  built  during  same  period,  1 1,-125  41 
Cost  of  military  lines  built  prior  to  July  1st,  1862,  but 

paid  for  in  this  year,  2,304  03 

Cost  of  incidental  expenses  during  same  period,  634  66 

Total  cost  of  building  and  operating  Military  Tele- 
graph lines  during  the  year,  $4i,668  51 
Receipts  from  offices  for  private  dispatches  during  the 

year,  3,153  15 

Excess  of  expenditures  daring  the  year,  $39,515  '36 

Value  of  property  on  hand,  in  use,  June , 

30th,  1863,  $125,040  00 

Instruments  and  material,  34,229  86 


Total  value,  $159,269  86 

Heretofore,  all  messages  sent  over  the  military  telegraph  lines  on 
the  business  of  the  Government,  including  messages  relating  to  mili- 


tary  matters,  have  been  sent  free  of  charge,  and  the  receipts  from 
offices  on  these  lines  have  been  limited  to  sums  charged  for  the  trans- 
mission of  messages  on  private  business.  If  the  usual  ratc;^  ha'l  been 
chargeil  on  messages  sent  over  these  lines  for  the  Government,  it  ia 
believed  they  would  have  more  than  repaid  the  expenditures,  by  which 
they  have  been  built  and  operated. 

TRANS-MISSISSIPPI  SE^.VICE. 

In  May,  1862,  after  the^fall  of  New  Orleans,  anticipating  difficul- 
ties in  keeping  up  the  postal  service  on  routes  across  the  Mississippi 
river,  I  sent  instructions  to  Special  Agents  Blair  operating  on  tho 
East,  and  Talbot  on  the  West,  of  that  river,  directing  them  to  be  vig- 
ilant in  their  efforts  to  keep  up  that  service,  giving  them  special  in- 
structions as  to  how  they  wore  to  proceed,  and  authorizing  and  direct- 
ing them,  v>'hen  the  mails  could  not  be  carried  by  the  usual  routes  and 
moles  of  conveyance  and  by  existi-ng  contracts,  to  make  temporary 
contracts  for  carrying  them  by  any  other  routes  and  modes  of  con- 
veyance, which  could  be  made  available. 

Congress,  acting  on  the  supposition  that  this  service  might  be  im- 
proved by  the  appointment  of  ad-litional  agents,  emcted  the  law  of 
'October  6th,  I8G3  authorizing  the  Postmaster  General  to  employ 
additional  Mail-Agent«  to  euperintond  the  transportation  of  the  maiU 
-across  the  Mississippi  river;  and,  on  the  14th  of  the  same  month, 
'R.  A.  Hundley  and  Charles  Ayliff  were  appointed  as  additional 
Special  Agents  for  that  purpose,  and  Averc  furnished  with  similar  in- 
structions to  those  abo/e  mentioned  as  having  been  given  to  Special 
Agents  Blair  and  Talbot.  They  were  all  directed  to  co-operate  with 
each  other  in  carrying  out  these  instructions,  and  in  the  procurement 
of  all  information  necessary  to  their  execution. 

After  the  fall  of  Vicksburg,  renewed  instructions  were  sent  out  to 
»11  of  these  Agents,  urging  on  them  the  importance  of  increased 
vigilance  and  energy  in  the  performance  of  their  duties,  and  giving 
them  such  additional  directions  as  were  required  by  the  new  emergen- 
-cies.  And  theVate  of  pay  to  Contractors,  carrying  the  mails  on  such 
routes  as  were  still  in  operation,  leading  to  and  from  the  river,  was 
greatly  increased,  after  tho  service  on  the  mute  between  Vicksburg 
-and  Monroe  had  been  interrupted  by  the  enemy,  on  account  of  tho 
increased  weight  of  the  mails  thrown  on  them,  and  as  an  additional 
inducement  to  the  successful  performance  of  that  service. 

Previous  to  the  fall  of  Vicksburg  and  Port  Hudson,  communication 
across  the  Mississippi  river  and  Valley  had  been  rendered  irregular 
and  uncertain  by  the  military  operations  of  the  enoni}'.  Pince  tlunr 
fall  and  occupation  by  them,  we  have  had  no  reliable  postal  servico 
across  that  river.  This  interruption  of  t'; '•  mails,  in  addition  to  the 
injury  and  inconvenience  resolting  from  the  hindrance  of  the  cheap, 
rapid  and  regular  transmission  df  intelligence  on  social  and  business 
pubjects,  has  prevented  the  Government  from  employing  this  means 
of  conveying  its  dispatches  and  official  correspondence  to  officers  west 
of  that  river,  and  receiving  communications  from  them.     And  it  has 


18 

prevented  that  communication,  which  was  necessary  to  secure  the 
evidence  of  the  performance  of  service  by  contractors  for  carrying 
the  mail:*;  and,  in  consequence  of  this,  they  have  not  recently  been 
regularly  puid,  and  many  of  them  have  not  been  paid  at  all  for  the 
performance  of  this  service,  as  recent  payments  became  due. 

This  conditinn  of  things  must  be  changed,  or  th:re  is  danger  that 
the  postal  service  in  the  States  west  of  the  Mississippi  will  be  broken 
up.  lleccntly,  contracts  have  been  made  with  parties  of  enterprise 
and  means,  by  which  I  am  led  to  hope  that  postal  intercourse  will  be 
S'?oured  with  those  States  with  more  or  less  regularitiy,  though  fixed 
ft«)hedule3  of  arrivals  and  departures  of  the  mails  have  not  been  se- 
cured, and  that  we  may  obtain  the  forwarding  of  the  back  mails  each 
way.  Uut  1  am  fully  persuaded  we  cannot  rely  upon  any  seivice, 
which  can  now  be  performed  across  that  river,  for  the  means  of  keep- 
ing the  postal  service  beyond  it  in  successful  operation.  This  will  be 
better  und  rstood  when  it  is  remembered  that  contractors  for  carrying 
t.'tf  mails  Ciwiiiot  be  paid  until  evidence  is  furnished  to  the  Department, 
from  each  end  of  any  route,  that  the  service  lias  been  performed. 
This  evidence  is  usually  forwarded  through  the  mails.  As  a  means 
of  paying  contractors  and,  at  the  same  time,  collecting  frouk  postmas- 
ters the  m  )ney3  in  their  hands  belonging  to  the  Department,  a  collec- 
tion-order is  sent  out  to  the  contractor  on  each  route,  authorizing 
him  to  collect  the  funds  of  the  Department  in  the  hands  of  each 
postmaster  on  his  route,  or  so  much  thereof  as  may  satisfy  his  claim 
tor  service.  Then,  each  postmaster  is  required  to  take  duplicate 
receipts  for  all  payments  made  to  contractors,  and  to  forward  one  of 
them  to  the  Auditor  of  the  Treasury  for  the  Post  Office  Department. 
After  these  receipts  are  returned,  the  evidence  of  his  perforn)ance  of 
the  service  furnished,  and  after  the  balance  due  the  contractor  has 
been  ascertained,  a  warrant  on  the  Treasury,  or  some  one  of  its 
brinches,  or  a  draft  on  some  draft-office,  is  sent  to  him  to  secure  his 
final  payment.  The  Department  sends  letters  of  appointment,  removal 
and  instructions,  and  all  blanks,  wrapping-paper,  postage  stamps, 
mail-locks  and  keys,  &c..  to  posmasters  through  the  mails  ;  and  receives 
quarterly  returns,  evidence  of  the  performance  of  service  and  of  the 
payment  of  contractors,  &c.,  from  them.  And  besides  these,  an  ex- 
tensive correspondence  is  all  the  time  kept  up  with  posmasters,  con- 
tractors and  the  agents  of  the  Department,  in  relation  to  changes  and 
irregularities  in  the  service. 

These  facts  are  presented  to  show  that  the  Department  cannot  rely 
on  the  uncertain  communication,  which  we  may  expect  across  the 
Mississippi,  to  keep  up  the  service  west  of  that  river.  In  order  to 
preserve  to  the  people  of  that  portion  of  the  Confederacy  the  neces- 
fearj  postal  f:i('il,ities,  I  recommend  that  Congress  authorize  the  appoint- 
ment of  an  officer,  to  be  employed  west  of  the  Mississippi,  and  who 
ahall  be  vested  by  the  Postmaster  General,  and,  if  necessary,  by  the 
President,  from  time  to  time,  with  sttch  powers,  and  charged  with  such 
duties  as  will  enable  him  to  appoint,  remove,  and  instruct  postmasters 
ftad  subordinate  agents  of  the  Department;  make  new  contracts  or 
*aaul  existing  ones,  if  need  be,  as  authorized  by  law ;  receive  returns 


19 

in  relation  to  the  service  ;  make  preliminary  settlements  with  con- 
tractors, and  make  to  them  partial  or  full  payments,  as  directed  by 
instructions  ;  distribute  postage  stamps,  post-oflBce  blanks,  wrapping 
paper,  &c. ;  and  to  perform,  generally,  all  such  duties  as  may  be 
required  of  him,  in  conformity  with  law,  tok^eepupthe  postal  service. 
All  his  acts  to  be  subject  to  the  final  revision  and  approval  of  the 
Postmaster  General  and  of  the  proper  accounting  officers  and,  where 
necessary,  to  the  approval  of  the  President. 

Before  disposing  of  this  subject,  it  is  proper  for  me  to  say  that, 
among  the  means  recently  adopted  for  securing  mail  service  across 
the  Mississippi,  was  the  establishment  of  an  express  mail  line,  under 
the  authority  of  "  An  act  authorizing  the  establishment  of  express 
mails,"  approved  May  1,  1863,  and  the  making  of  a  contract  with  a 
party  represented  to  have  ample  means  of  carrying  it  out,  for  the  con- 
veyance of  letters  and  packages,  twice  a  week,  between  Meridian,  Mis- 
sissippi, and  Shreveport,  Louisiana.  On  all  letters  or  packages  sent 
by  this  line,  the  postage  to  be  pre-paid,  is  at  the  rate  of  forty  cents 
for  each  single  letter  of  one-half  ounce  in  weight,  and  forty  cents  for 
every  additional  half  ounce,  or  fraction  of  a  half  ounce.  Public 
advertisement  has  been  made,  giving  directions  for  the  manner  of 
transmitting  letters  by  this  line. 

APPOINTMENT  OF  AN  ADDITIONAL  AUDITOR. 

Your  attention  is  respectfully  called  to  the  necessity  for  the  appoint- 
ment of  an  additional  Auditor.  The  First  Auditor  is  now  charged 
with  the  settlement  of  the  accounts  of  the  State,  Treasury,  Navy, 
and  Post-office  Departments,  and  of  the  Department  of  Justice.  The 
Second  Auditor  settles  the  accounts  of  the  War  Departmeint.  The 
duties  of  the  First  Auditor  are  believed  t)  be  so  great  as  to  render  it 
physically  impossible  for  him  to  give  them  that  personal  supervision, 
which  is  necessary  to  the  correct  and  speedy  settlement  of  the  numerous 
accounts  which  are  now  required  to  be  settled  in  his  bureau,  and  to 
secure  systematic  accuracy  in  his  books,  and  a  convenient  arrangement 
of  the  files  of  his  office  for  present  use  and  future  reference.  Indeed, 
the  rapid  growth  of  the  duties  of  this  officer,  in  connection  with  the 
accounts  of  the  other  Departments,  has  made  it  necessary  for  him  to 
remove  his  office,  and  that  of  his  chief  clerk  and  other  clerks  engaged 
in  the  settlement  of  those  accounts,  to  another  building  somewhat 
remote  from  this  Department,  rendering  it  inconvenient  for  its  other 
officers  to  obtain  his  advice  and  direction  in  the  adjustment  of  it8> 
accounts.  ^ 

Leaving  out  of  view  the  number  of  accounts  he  is  required  to  audit 
for  the  other  Departments,  he  was  required,  during  the  last  year,  to 
settle  the  quarterly  accounts  of  six  thousand  one  hundred  and  forty- 
one  postmasters,  and  one  thousand  five  hundred  and  thirty-four  regular 
and  special  contractors  for  carrying  the  mails;  the  monthly  accounts 
of  ten  special  mail  agents  and  eighty-seven  route  agents  ;  and  the 
monthly  accounts  of  forty-eight  telegraph  agents,  o[  erators,  and' 
watchmen — making  in  all  thirty-three  thousand  four  hundred  andi 
forty  accounts  annually. 


to 

In  addition  to  the  settlements  of  these  accounts,  the  amount  of  cor- 
respondence between  the  Auditor's  office  and  the  various  postmasters 
and  contractors  is  very  large,  embracing  frequent  instructions  to  both, 
relating  to  the  correction  of  accounts  and  the  payment  of  balances  by 
postmasters;  in  sending  out  collection  orders  to  contractors  ;  receiv- 
ing and  preserving  the  evidence  of  payments  made  on  them  ;  and  in 
transmitting  warrants  and  drafts  to  pay  contractors,  and  orders  for  the 
collection  of  balances  in  the  hands  of  postmasters  for  transfer  to 
draft  and  deposit  offices,  &c. 

Under  the  government  of  the  United  States,  the  clerical  force  en- 
gaged in  auditing  the  accounts  of  the  I'ost-Office  Department  was 
greater  than  that  engaged  in  the  Department  proper.  The  proportion 
must,  of  necessity,  be  about  the  same  here.  1  mention  this  to  show 
the  amount,  as  well  as  the  importance,  of  the  business  of  auditing  for 
this  Department. 

The  importance  of  the  duties  entrusted  to  the  Auditor's  office  will 
be  more  readily  comprehended  by  an  examination  of  the  act,  approved 
May  16,  18GI,  "to  provide  for  auditing  the  accounts  of  the  Post-Uffice 
Department."  The  mode  of  settlement  of  the  accounts  of  this  De- 
partment differs  materially  from  that  used  in  connection  with  all  other 
classes  of  public  accounts,  in  this  particular:  that,  while  all  other 
accounts  are  subjected  to  the  revision  of  a  Comptroller  of  the  Trea- 
sury after  they  have  passed  through  an  examination  in  the  Auditor's 
office,  the  arcounts  of  this  Department  arc  fully  and  finally  adjusted 
and  closed  by  the  Auditor,  except  in  cases  of  appeal.  All  suits  and 
legal  procet dings  for  the  collection  of  sums  due  the  Department,  and 
■correBpoiidence  with  District  Attorneys  and  Marshals,  are  conducted 
by  the  Auditor,  instead  of  being  done  by  the  Department  of  Justice, 
&B  is  the  case  in  regard  to  the  other  Departments. 

These  marked  distinctions,  in  conjunction  with  the  number  and 
magnitude  of  the  accounts  of  the  Department,  and  the  necessity  for  a 
prompt  adjustment  of  them,  and  a  close  collection  of  its  revenues  to 
ineore  its  ability  to  meet  the  requirement  of  the  (.Constitution,  that  it 
ehall  pay  its  expenses  out  of  its  revenues,  make  it  important  that 
an  Auditor  should  be  provided,  who  can  devote  his  entire  attention  to 
the  adjustment  of  these  accounts,  and  to  the  vigorous  collection  of  the 
revenues  of  this  Department;  and  I  would  respectfully  suggest  that 
the  efficiency  of  the  Department,  and  the  interest  of  persons  engaged 
in  its  eervices,  would  be  greatly  promoted  by  the  appointment  of  a  Third 
Auditor,  to  be  charged  with  the  duties  in  connection  with  tie  Post- 
Office  Department,  now  performed  by  the  First  Auditor,  and  I  reoom- 
uvend  the  passage  of  a  law  for  that  purpose. 

COMPENSATION  TO  BUREAU  OFFICERS  AND  CLERKS. 

It  is  my  duty  to  call  your  attention  to  the  inadequacy  of  the  com- 
rpensation  of  the  bureau  officers,  clerks  and  employees  of  this  Depart- 
ment, for  some  time  past,  owing  to  the  depreciation  of  the  value  of 
oar  currency,  and  to  the  high  prices  of  all  the  necessaries  of  life. 

Their  present  compensation,  which  would  be  ample  if  it  would  com- 


inand  the  means  of  living  at  the  ordinary  rates,  is  not  safficient  to 
pay  their  board,  leaving  out  of  view  their  necessary  clothing,  lodgings, 
fuel,  and  such  medical  attentions  as  they  may  happen  to  require.  This 
condition  of  affairs  has  caused  several  of  the  clerks,  whose  services 
■were  valuable  to  the  Department,  to  resign  their  places,  and  seek 
other  employments  to  obtain  a  support.  Others  of  them  have  con- 
tinued in  the  discharge  of  their  duties,  under  circumstances  which  do 
credit  to  their  patriotism.  It  is  necessary,  in  justice  to  their  situa- 
tion, as  well  as  to  secure  the  good  of  the  service,  that  they  should  be 
paid  enough  to  defray  the  ordinary  expenses  of  living.  This  may  be 
done  either  by  the  improvement  of  the  currency,  or  by  furnishing  the 
necessaries  of  life  in  kind,  or  by  an  increase  of  their  salaries. 
I  have  the  honor  to  be. 

Very  respectfully,  your  obedient  servant, 

JOHN  H.  REAGAN, 

Postmaster  General.     . 
The  President. 


e:stii^^-<a^te:s 


ACOOMrANYl.VO 


POSTMASTER  GENERAL'S  REPORT. 


Post-Offick  Department,      ) 
Richmond,  Nov.  7,  1863.  ) 

Sir  :  I  have  the  honor  to  submit  the  following  estimates  of  the 
sums  required  for  the  compensation  of  the  Postmaster  General,  chiefs  of 
bureaus,  clerks,  messengers,  and  laborers  of  the  Post-Office  Department, 
for  six  months,  from  the  Ist  of  January  to  the  30th  of  June,  1864, 
under  the  fullowing  named  acts  of  Congress,  to  wit:  "An  Act  to  de- 
termine the  salaries  of  the  Vice  President  and  of  the  Heads  of  De- 
partments," approved  February  1,  1861  ;  "An  act  further  to  provide 
for  the  organization  of  the  Post-Office  Department,"  approved  March 
9,  1861  ;  "An  act  to  amend  an  act  further  to  provide  for  the  organi- 
sation of  the  Post-Office  Department,  approved  March  9,  186  I, "ap- 
proved May  11,  1861  ;  "An  act  to  provide  a  compensation  for  the 
disbursing  officers  of  the  several  E.KCCutivo  Departments,"  approved 
May  16,  1861  ;  "An  act  to  increase  the  clerical  force  of  the  Post-Office 
Department,"  approved  January  23,  1862:     ^ 

For  the  compensation    of   the  Postmaster  General,  at  $6,000  per 

annum,  $3,000  00 

For  three  Chiefs  of  Bureaus,  $3,000  per  annum,  4,500  00 

For  one  chief  clerk,  $1,500  per  annum,  750  00 

For  one  topographer,  $1,500  per  annum,  750  00 

For  one  di.sbursing  clerk,  $l,4t»0  per  annum,  700  00 

For  four  principal  clerks,  $1,400  per  annum,  2,800  00 

For  twenty-four  clerks,  $1,200  per  annum,  14,400  00 

For  nineteen  clerks,  $1,000  per  annum,  9,500  00 

For  two  messengers,  $500  per  annum,  500  00 

For  one  messenger,  $400  per  annum,  200  00 

'For  one  watchman,  $500  per  annum,  250  00 

For  four  laborers,  $  1 ,50  per  diem,  1 ,092  Oi) 

Making,  '    '    '     ^"^ '"  $38,442  00 


.    s 

93 

8 

93 

3 

57 

14 

23 

257 

04 

341 

43 

17 

86 

7 

14 

8 

93 

29 

25 

23 

Anftount  brought  forward,  ,  $33,442  ('0 

In  addition  to  the  foregoing  estimate,  an  appropriation  ia 
required  for  the  increase  pay  of  the  employee?  of  thia 
Department,  from  the  1st  to  the  13th  of  January,  1864, 
inclusive,  at  the  rate  fixed  by  the  Act  approved  Octo- 
ber, 13,  1862,  ''to  increase  the  pay  of  certain  ofiRcers 
and  employees  in  the  Executive  and  Legislative  De- 
partments," to  wit : 

One  chief  clerk,  at  $250  per  annum, 

One  topographer,  $250  per  annum, 

One  disbursing  clerk,  SldO  per  annum. 

Four  principal  clerks,  $100  per  annum, 

Twenty-four  clerks,  $300  per  annum, 

Nineteen  clerks,  $500  per  onnum, 

Two  messengers,  $250  per  annum. 

One  messenger,  $200  per  annum, 

One  watchman,  $250  per  annum, 

Three  laborers,  75  cents  per  diem,  29  25         697  36 

Making  a  total  of  $39,139  86 

The  amount  of  former  appropriations,  for  the  purposes 
before  specified,  Avhich  remained  unexpended  in  the 
Treasury,  to  the  credit  of  the  Post-Office  Depjy-tment, 
on  the  1st  day  of  November,  1863,  was:     $5!,/34   48 

From  which  deduct  the  amount  which  it  is  esti- 
mated will  be  expended  for  the  months  of 
November  and  December,  186.J,  16,0i)0   00 

Will  leave  an  estimated  unexpended  balance  for 

the  service  of  the  next  six  months  of  S5,7S4  48 

This  will  leave,  to  be  provided  for,  by  appropriation,  for 

the  next  six  months,  3,404  68 

There  remained  unexpended  in  the  Treasury,  to  the  credit 
of  the  contingent  fund  of  the  Post-Office  Department, 
on  the  1st  day  of  November,  1863,  23,826    i3 

Of  this  sum  it  is  estimated  that  the  contingent  expenses  of 
the  Department,  for  the  months  of  November  and  De- 
cember, 1863,  will  be,  5,000  00 

This  will  leave  an  estimated  unexpended  balance  of  the 
contingent  iTund  for  the  service  of  the  next  six  months, 
of  18.826    13 


This,  it  is  supposed,  will  cover  the  incidental  and  contingent  ex- 
penses of  the  Department,  for  the  next  six  months,  and  no  additional 
appropriation  is,  therefore,  required  for  that  period. 

I  have,  therefore,  respectfully,  to  ask  that  the  sum  of  throe  thousand 
four  hundred  and  four  dollars  and  eighty-eight  cents  ($3,404  88)  be 
appropriated  for  the  pay  of  the  Postmaster  General,  chiefs  of  bureaus, 
clerks,  messengers,  and  laborers  of  the  Post-Office  Department,  for 
«ix  months,  from  the  let  day  cf  January  to  the  30th  of  June,  1864. 


24 

I  also  reapectfally  ask  an  "appropriation  for  alterations,  reat,  ilam- 
tgeir,  Ijgijta.  «tc.,  for  a  buil  ling  for  a  post-office  in  the  city  of  Rich- 
mond," as  follows  : 

To  supply  (le^.ciency  under  act  approve'!  May  1.  I8G3,  $8,1HK»  «H> 

For  rent,  from  Ist  of  January  to  30th  June,*  1804,  3,(M»0  00 

For  fuel,                                    *  8110  00 

For  gas-li^ht,  2,2(10  0  0 

$I4,000_0«_> 

Very  respectfully, 

Your  obedient  servant, 

JOHN  II.  REAGAN, 

Fust  master   (kneral. 

The   pRRSiDENT. 


Post  Opkick  DtPARXMtNT,       ) 
Richmond,  Nov,  7th,  18G3.  ) 

Sir  :  1  submit  the  following  estimates  of  appropriations  for  the  com- 
pensation of  agents,  operators  and  watchmen,  and  for  the  cost  of  ma- 
terials, construction,  repriiring  and  operating  railit:ir3''  telegraph  lines 
for  six  mjuths  from  the  1st  of  January  to  the  3i)th  of  June,  1804, 
under  the  provisions  of  the  act  "  relative  to  telegraph  lines  of  the 
Confederate  States,"  approved  May  11th,  1861. 

The  actual  expenditure  for  these  purposes,  for  the  six  months  A'hich 
ended  Scpt'jmber  3')th,  1803,  were  as  follows: 

Amount  puid  agents  and  operators,  $9,945  76 

"  watchmen,  2,356  66 

"         "  office  expenses,  77  95 

"          "  office  material,    .  13,273  lO 

"          "  construction,  11,204  44 

'*         "  repairs  of  lines  and  instruments,                           576  13 

*'          "  ini^idental  expenses,  456  15 


Total  cost,  $37,950  37 


Taking  the  foregoing  as  a  basis  and  allowing  25  per  cent,  increase 
on  the  amounts  paid  agents,  operators  and  watchmen,  and  lOU  per 
cent  increase  on  the  amounts  paid  for  ofiice  material  and  construction 
in  consequence  of  the  scarcity  of  material,  and  the  advance  in  price, 
the  probable  cost  for  the  six  months,  ending  June  30th,  1804,  will  be 

For  agents  and  operators,  $12,432    18  3-4 

For  watchmen,  2,945  82  1-2 

For  office  expenses,  77  95 


Amount  carried  forward,  15,455  96   1-4 


25 

Amount  brought  forward,  15,455  96   1-4 

For  office  material,  26,546  38 

For  construction,  22,528  88 
For  repairs  cf  lines  and  instruments,  576   13 

For  incidental  expenses,  456   15 


Total  cost,  $65,563  50  1-4 

I,  therefore,  respectfully  request  that  the  sura  of  eixty-five  thousand 
five  hundred  sixty-three  dollars  and  fifty  cents  ($05,563  50,)  be  ap- 
propriated for  the  purposes  above  named, 
Very  respectfully, 

Your  obed't  serv't, 

JOHN  H.  REAGAN, 

Postmaster  General. 


APPENDIX 


POSTMASTER   GENERAL'S   REPORT. 


Auditor's  Office,  Post  Office  Department,      ) 

November  26th,  1863.  \ 

Hon.   J.   II.   Rf.ag.kvi,  Postmaster  General: 

Sir  :  I  have  the  honor  to  submit  the  following  report  of  the  finan- 
cial operations  of  the  Department  during  the  fiscal  year,  ending  June 
3(1,  18G3  ;  and,  in  this  connection,  subjoin  tabular  statements  marked 
A,  B,  and  C,  exhibiting  in  detail  the  nature  of  the  receipts  aud  expen- 
ditures. 

TIEVENUE    ACCOUNT    OF    THE    POST-OFFICE    DEPART- 
MENT 

The  balance  standing  on  the  books  of  this  office  to  the 
credit  of  the  revenue  account  of  the  Department 
on  the  30th  June,  1862,  was  $1,209,916   IC 

The  receipts  from  1st  July,  1862,  to  30th  June,  18G3, 

shown  in  tabular  statement  A,  were  3,337,853  01 

The  amounts  placed  in  the  Treasury  for 
the  use  of  the  Department,  being  grants 
in  aid  of  the  revenue,  under  acts  of 
Congress,  were,- under  act  No.  340,  ap- 
proved Dec.  31,  18GI,  "for  printing 
blanks  for  the  Post-Office  Department,"     $  1 6,000  00 

Under  act  No.  59.  approved  Sept.  27, 
1862,  "  to  pay  deficit  in  the  Post-Office 
Department  under  the  provisions  of  an 
act  to  provide  for  the  payment  of  sums 
ascertained  to  be  due  for  postal  service 
to  citizens  of  the  Confederate  States  by 
the  Postmaster  General,"  $800,000  00 

Amounts  carried  forward,  816,000  00    4,547,769  17 


27 

Amounts  brought  forward,  816,000  00    4,547,769  17 

Under  acts  approved  the  9th  and  13th  Oct. 
1862,  "to  supply  deficiencies  in  the 
revenue  of  the  Post-Office  Department 
for  the  months  of  December,  1862,  and 
January,  1863,"  261,214  78     1,077,214  IS 


Making   the    aggregate   of    revenue   and 

grants,  8^,624,983  95 

The  expenditures  of  the  Department  from 
1st  July,  1862,  to  June,  1863,  inclu- 
ding arrearages  of  the  previous  fiscal 
year,  paid  during  the  last  fiscal  year,  as 
shown  in  tabular  statement  B,  were,  3,239,319   49 

Leaveing  to  the  credit  of  the  revenue  ac- 
count on  the  Ist  July,  1863,  ~  $2,385,664  46 

The  postal  revenue  for  the  fiscal  year,  as 

per  table  A,  being  3,337,853  01 

And  the  expenditures  for  the  same  period 

per  table  B,  3,239,319  49 

Les  the  sums  paid  on  account  of  United 
States  indebtedness  to  mail  contrac- 
ors  assumed  by  the  Confederate  States, 
amounting  to  5(12,017   19 

And  Confederate  States 
transportation,  which 
accrued  prior  to  July 
1,  1862,  and  remained 
unpaid  as  per  last  re- 
port, on  30th  Septem- 
ber, 1  862,  amounting 
to  233,644  50      735,661   69      2,503,657  80 


The    excess    of    revenue    over   adjusted  expenditures 

was  834,195  21 

Deduct  from  that  excess  the  balance  of  transportation 

due  and  unpaid  on  3()th  September,  1863,  viz:  159,146  77 

And  the  excess  of  revenue  over  all  expenditures  incur- 
red as  exhibited  in  statement  C,  was  $675,048  44 


The  net  revenue  of  the  Department  from  postages,  being  the  aggre- 
gate amount  of  balances  due  the  Confederate  States  by  postmasters  on 
the  adjustment  of  their  quarterly  accounts  to  30th  June,  1S63,  after 


retaining  their  compensation  and  deducting  tbe  expenses  of  their 
offices,  was, 

For  the  quarter  ending  September  3»),  1862,  $510,411   93 

For  the  quarter  ending  December  31,  1862,  543,648  51 

For  the  quarter  ending  March  31,  1863,  53H,?36  23 

For  the  quarter  ending  June  30,  1863,  740,999   15 


And  the  total  net  revenue  from  postage,  $2,325,295  8i 

The  amount  of  letter  postage  paid  in  money  was,  during  the 
Quarter  ending  September  30th,  1862,  184,164  88 

Quarter  ending  December  31  St,  1862,  185,326  13 

Quarter  ending  March  31 9t,  1863,  183.330  72 

Quarter  ending  June  3iith,  1863,  200,248  01 


Total,  $753,069  84 

The  number  of  accounts  audited  during  the  year,  and  on  which  the 

foregoing  sum  was  ascertained,  was,  for  the 

Quarter  ending  September  30,  1862,  5,350 

Quarter  ending  December  31,  1862,  5,187 

Quarter  ending  March  31,  1863,  4,810 

Quarter  ending  June  30,  1863,  4,418 


Making  the  total  number  audited,  19,766 

It  was  discovered  in  auditing  the  above  number  of  accounts  that 
errors,  amounting  to  fifty  cents  and  upwards  had  been  made  against 
the  Confederate  States  in  6,675  of  them;  and  copies  of  that  number 
of  accounts  current  showing  the  errors  were  prepared  and  transmitted 
to  the  respective  postmasters  with  proper  instructions. 
The  gross  amount  of  postage  stamps  sold  during  the  year, 

was,  $2,392,332  63 

The  amount  used  in  the  pre-payment  of  postage  and 

cancelled  was,  1,857,798  41 


Leaving  afloat  and  principally  employed  as  currency,    534,534  22 

CONTRACTORS    ACCOUNTS. 

The  average  number  of  contractors  accounts  settled  in  each  quarter, 

was. 

On  regular  mail  routes,  1,534 

On  special  mail  routes,  223 

Of  route  and  express  agents,  128 

Of  mail  messengers  and  local  agents,  124 


Making  the  total  number  each  quarter,  2,009 

And  the  whole  number  of  settlements  during  the  year,         8,036 


The  amount  charged  to  "  accrued  transportation"  and  placed  to  the 
credit  of  mail  contractors  and  others  for  mail  transportation  during 
the  year,  was, 
For  services  on  regular  mail  lines,  $1,653,903  00 

For  tlie  supply  of  special  officers,  24,379   10 

For  salaried  of  route  agents,  80,477  74 


Total,  $1,758,759  84 


The  amount  credited  to  "  accrued  transportation"  and 

charged  to  contractors  and  others  forovcr  credits  and 

damages,  $6,564  54 

Of  fines  imposed  upon  contractors,  1,030  84 

Of  deductions  from  contractors'  pay,  136,312  97      143,908  35 


Leaving  the  net  amount  to  the  credit  of  contractors  and 

others,  $1,614,851    49 

Add  balance  due  to  contractors  and  others  and  remain- 
ing unpaid  on  the  30th  September,  1862,  '  233,644  50 


1,848,405  99 


Deduct  amount  actually  paid  for  mail  transportation, 

excluding  U.  iS.  claims  during  the  year,  1,689,349  22 


And  the  balance  remaining  unpaid  September  30,  1863, 

is  shown  to  be,  150,146  77 

The  amount  of  the  appropriation  to  provide  for  the  payment  of  sums 
due  citizens  of  the  Confederate  States  for  United  States  postal  ser- 
vice performed  prior  to  June  1,  1861,  was,  $8  '0,000  00 

The  aggregate  of  United  States  claims  settled  by  drafts 

and  warrants  to  September  30,  1863,  was,  502,017   19 


Leaving  an  unexpended  balance  of,  297,982  81 

COLLF.CTION    OF    1  HE    REVENUE  OF    THE    DEPARTMENT. 

The  number  of  Post-offices  in  operation  during  the  fiscal  year  was 
6,141. 

The  following  Post-offices,  twelve  in  number,  were  made  *'  deposi- 
tories," and  were  authorized  and  directed  by  the  Postmaster  General 
to  receive  and  retain,  subject  to  drafts  from  the  Department,  the  reve- 
nue of  certain  adjacent  offices,  as  well  as  the  revenue  of  their  own  : 

Atlanta,  Ga.  Greenville,  S.  C. 

Columbus,  Ga.  Knoxville,  Tenn. 

Cuthbert,  Ga.  Mobile,  Ala. 

Columbia,  S.  C.  Macon,  Ga. 

Columbus,  Miss.  Raleigh,  N.  C. 

Grenada,  Miss.  Spartanburg,  S.  C. 


30 

125  are  "  draft  offices,"  and  with  the  foregoing  "depositories"  paid 
during  the  year,  3,192  drafts  issued  by  the  Postmaster  General, 
and  countersigned,  entered,  and  sent  out  by  the  auditor,  for  sums 
amounting  in  the  aggregate  to,  $5(18,779  71 

112  are  "depositing  offices,"  and  turned  over  to  the 
Treasurer,  Assistant  Trea<5urer,  and  other  Confed- 
erate l>tatcs  Depositories,  during  the  year,  (exclu- 
sive of  amounts  deposited  at  Galveston  and  Little 
Rock)  during  the  last  quarter,  1,047,782  49 

5,546  are  "collection  offices,"  and  p;iid  during  the 
vear,  on  orders  issued  by  the  auditor^to  mail  con- 
tractors, '  480,1C2  40 

346  are  ''special"  and  "  mail  messenger  office?,"  do- 
riving  their  supplies  chieiiy  from  the  revenues  of 
this  class  of  offices ;  the  cost  of  this  supply  was,  24,879   10 


Showing  the  amount  paid  into  tlic  Treasury,  and  fjr 
the  uses  and  purposes  of  the  I'opt-Office  Department 
by  the  postmasters,  after  deducting  their  compensa- 
tion, and  the  incidental  expenses  of  their  offices  to 
have  been,  $2,061,043  70 

1,890  treasury  warrants  were  issued  by  the  Postmas- 
ter General,  and  countersigned,  charged,  and  sent 
to  the  Treasury  by  the  Auditor  for  sums  amounting 
to,  $1,269,960  9S 

With  great  respect, 

Your  obedient  servant, 

J.  W.  ROBERTSON, 

Acting  Auditor. 


SI 


(A.) 


STATEMENT  ejchibiting  the  Receipts  of  the  Post- Office  Department 
under  their  several  Heads  for  the  Fiscal  Year  ending  June  30?A, 
1863. 


3d  quarter, 
1863. 

4th  quarter, 
1862. 

let  quarter, 
1883. 

2d  quarter, 
1S5J. 

Total  under 
each  head. 

Afirg  rebate 
amount. 

Letter  poBtngo 

N  e  w  8  II  a  pnra    and 

parniihletB  

P^slHge      BlaQipo 

sol  d 

$184,164  83 

45,245  24 

487,754  48 

24  00 

|IS6,326  23 
44,901  42 
542  194  86 

♦183,330  72 
46,211  10 
659,857  48 

$200,248  01 

52,304  76 

822,525  81 

3,761  02 

$  753,069  84 

188,665  52 

2,392,332  63 

3,7S5  OJ 

Surplus    of    emolu 
m.-nt8 

$U7,191  60l   $772,422  61 

1769,399  30 

$1,078,839  60 

$3,337,858  01 

(B.) 

STATEMENT  exhibiting  the  Expenditures  of  the  Post-Office  De- 
partment under  their  several  Heads  for  the  Fiscal  Year  ending  June 
SQth,   1863. 


Transportation 

Componsat'n  of  p<iet- 
masters 

C  mpenBat:on  of  P 
O.  clerks , 

8b:p,  steamboat  aud 
way  letters 

Advertising    

Mail  bags 

Office   funiilure 

Blanks  and  printing. 

Wrapping  paper 

Mail  locks,  keys  and 
stamps 

Mail  depredat'na  and 
special  ageii  s 

Miscellaneous  pay- 
ments  

Postage   stamps 


3d  qnarter,  4th  quarter, list  quarter, 
1862         I        1862.        I        1863, 


$711,5J5 

189,996 

20,216 

123 
769 
18 
15 
543 
138 

281 

4,331 

2,880 
l,5i9 


13  $6^8,904  OS 
65  206,397  40 
10,       23,866  50 


234  08 

1,319  54 

59  59 

11  00 

10,883  55 

127  85 


5,193  75 

4,205  10 

2,529  60 


$630,609  08 

222,216  77 

18,433  92 

189  12 

9  057  76 

118  98 

12.T  00 

2.512  34 
79  43 

374  40 

5,546  18 

4,486  67 

8.513  88 


$932,572  44    $783,792  13     $102,263  51     $620,691  41 


2d  quarter, 
1363 


$320,2':8  14 
244,262  75 
28,336  06 

224  92 

1,768  99 

59  00 

1,.'»8  50 

108  00 
8,992  45 

100  65 

5,794  27 

8,967  69 


Total  under 
each  head. 


$.2,191,366  11 

862,873  57 

91,352  66 

771  41 

12,915  6i 

256  35 

l,4t)0  00 

14  047  76 

9,338  18 

756  75 

21,008  31 

20.539  69 
12,572  78 


Aggregate 
amouol. 


$3,239,319  49 


♦  Of  this  sura  $502,017  19  was  pal<l  for  postal  service  rendered  in  the  Sintos  of  the  Ccnfederncy 
under  ountract  or  appointment  made  by  the  Uaited  States  (ioverm«nt  be^re  the  Confedcrnlc  dtate« 
Iwk  charge  of  suoh  service.    See  act  approved  Sept   27, 1802,  chap.  It. 


32 


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A  TABULAR  STATEMENT,  showing  the  number  of  Post-Offices  in 
existence,  also  the  number  established  and  discontinued,  and  the  number  of 
resignations,  removals,  deaths  and  appointments  of  Postmasters,  and  the 
number  of  commissions  issued  to  Postmasters  from  July  \st,  1862,  to 
June  SOth,  1863,  inclusive.  H 


STATES. 


Alabama 

Arbansas 

Floridn 

Georgia 

Louisiaua 

Misaissippi 

North  Carolina 
South  Carolina, 

Tennessee 

Texaij 

Virigiuia 


o 

°  5 

il 

a 

O 

. 

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ail 

3 

> 
o 

a 

M 

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a  ? 

1^5 

^A 

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« 

5 

ft 

fc 

7fi8 

28 

81 

'J9 

15 

234 

619 

2 

8 

17 

4 

27 

167 

9 

11 

22 

3 

4 

48 

815 

14 

40 

92 

8 

13 

184 

307 

1 

26 

32 

5 

3 

49 

568 

18 

50 

57 

•6 

8 

89 

1.070 

23 

37 

62 

6 

12 

322 

576 

8 

25 

37 

2 

12 

121 

95.^ 

4 

9 

34 

7 

4 

66 

710 

14 

47 

61 

13 

2 

89 

1,732 

16 

66 

89 

7 

16 

251 

8,287 

137 

400 

602 

62 

93 

1,480 

213 
17 
47 

169 
31 
73 

256 
92 
53 
52 

222 


1,225 


Respectfully  submitted. 

B.  N.  CLEMENTS, 
Chief  of  Appointment  Bureau. 
Post-Office  Department, 
Appointment  Bureau. 


34 


f 


pH8.5 


